Sun, 29-May-2022
Tuesday 25 Feb 2020 , 3:23 pm

Rise in Consumer Demands Drive the 5G Chipset Market

With the increasing data traffic, network operators are being forced to provide more bandwidth to its customers. To fulfill this requirement, 5G network is expected to provide more bandwidth than 4G and 3G network generations. And this adoption is estimated to create plenty opportunities for 5G chipset makers.
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The adoption of smartphones has expanded rapidly in recent years. In the fourth quarter of 2019, only Samsung shipped approximately 69.4 million smartphones and in 2019. Mostly, the growth is expected in the emerging areas, where smartphones account for approx. 70% of total handset shipments. Also, the demand for smartphones have risen because of the various flexible and affordable data plans, offered by the mobile operators.

The reason behind this rising demand for smartphones is increased use for social media networking, communication through email or messaging, gaming, multimedia, and web browsing. These functions are fueled by the multimode 3G/4G LTE connectivity, advanced features of multimedia, robust mobile processors, and superior location awareness capabilities.

To increase internet data traffic, more bandwidth is a need of an hour. As per the predictions, 5G will provide approx. 1,000 times more bandwidth than 4G and 3G network generations. That’s why the growing data traffic is forcing network operators to provide more bandwidth to its customers. And this factor is propelling the demand for 5G technology. As per the report of The Insight Partners, 5G chipset market is estimated to grow at a CAGR of 41.0% during 2020 and 2027, it is expected to reach at US$ 22.86 billion by 2027.

The global 5G chipset market is largely driven by exponentially growing requirements of the consumer electronic devices and this is encouraging not only manufacturing prospects but also convergence of the electronics industry driving a quest for semiconductor industry.

Recently, Intel announced the launch of the Intel Atom P5900, a 10nm system-on-chip (SoC) for wireless base stations, which is a critical early deployment target for 5G networks.

New 2nd Gen Intel Xeon Scalable processors (Source: Intel Corporation Website)

On the occasion, Navin Shenoy, Executive Vice President and General Manager of the Data Platforms Group at Intel said, “As the industry makes the transition to 5G, we continue to see network infrastructure as the most significant opportunity, representing a $25 billion silicon opportunity by 2023.”

He also added, “By offering customers the fastest and most effective path to design, deliver and deploy 5G solutions across core, edge and access, we are poised to expand our leading silicon position in this growing market.”

Glancing at geographical scenarios, North America is the largest 5G chipset market share and Asia Pacific is expected to surpass North America in coming years. Reason behind this growth are:

  • government in this regions are taking various initiatives
  • investment funding are undertaken by the organizations to promote semiconductor industrial growth
  • rising demand for more semiconductor applications in automotive, other electronic products including wireless, storage products, and consumer goods.

Plus, many companies including Huawei Corporation, IBM Corporation, MediaTek Inc., Nokia Corporation, and Samsung Group are already active in the market.

As technology is changing rapidly, it demands consistent changes in the semiconductor industry too. And the growth of technologies such as AI, IoT and connected devices across all industry verticals are expected to offer wide number of opportunities to the companies involved in the 5G chipset market.

Neha Mule

Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.

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